Al-Etihad Insurance approves capital hike through bonus shares

20/06/2019 Argaam

Al-Etihad Cooperative Insurance Co.’s shareholders approved a 45.4 percent capital hike to SAR 400 million from SAR 275 million through the issue of bonus shares during the general assembly meeting held on June 19, 2019.

 

The step aims to support the company's capital base, enhancing its ability to afford a greater share of premiums and planning new insurance products while maintaining an adequate solvency margin to withstand expansion plans in the near future.

 

The capital hike will be financed through capitalizing SAR 95.7 million from retained earnings account and SAR 29.3 million from statutory reserve.

 

Key Figures of the capital increase

Current Capital

SAR 275 mln

Number of shares

27.5 mln shares

Hike (%)

45.45% (5 shares for every 11 shares)

New Capital

SAR 400 mln

New number of shares

40 mln shares

Record date

June 19, 2019

Driver

Support the company's capital base, enhancing its ability to afford a greater share of premiums and planning new insurance products while maintaining an adequate solvency margin to withstand expansion plans in the near future

 

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